No matter your experience in the stablecoin space, USDe may have appeared as one of the more popular stablecoin alternatives in your wallet. Created by Ethena Labs to act as a censorship-resistant alternative to fiat currencies, USDe is backed by various crypto assets (ETH and derivative markets included) and maintained through delta neutral hedging to maintain its peg with fiat currencies.
Delta-neutral hedging involves accepting collateral and simultaneously opening short perpetual futures positions of equal amounts to hedge these collateral assets, thus maintaining a constant funding rate by offsetting losses in long positions (i.e. hedging). Furthermore, this approach guarantees an affordable funding rate no matter their underlying price, making USDe more stable overall.
When minting or redeeming USDe, the protocol automatically opens an equivalent perpetual futures short position on derivatives exchanges for that notional value in order to prevent liquidity crises in collateral asset markets that might cause USDe’s funding rate to reverse itself.
USDe token is backed by perpetual futures and therefore provides investors with non-inflationary yields on its USD-denominated savings vehicle for Web3 investors. By taking this approach, USDe can offer sustainable non-inflationary yields on Web3 investors’ savings vehicles.
At present, USDe offers a 1.5 percent yield which allows it to compete with traditional stablecoins like USDT for consumer savings and exceed even that offered by Bitcoin Cash as the highest yielding stablecoin.
As of May 2025, USDe can now be purchased on various decentralized finance platforms, such as Uniswap and Hyperliquid, further expanding its reach in the ecosystem. Through these partnerships, liquidity should increase further allowing more users to easily access this stablecoin for their DeFi needs.
USDe invests heavily in its infrastructure, continuously adapting reserve fund management, acceptable collateral types and operational parameters based on community input and market conditions to remain an evolving, robust, censorship-resistant and scalable solution for users.
USDe’s governance model emphasizes transparency, with regular metrics on assets, swaps, staking and solvency being released regularly by USDe. Furthermore, their team works constantly on improving technology integration with more DeFi protocols like TON. TON integration will further expand availability in the wider crypto community while they have even opened their source code to encourage collaboration amongst their developer community.